Annual Report 2017

Pearson is the world’s learning company, providing a range of products and services to help people across different learning stages make measurable progress in their lives.


 

Chairman's introduction

"2018 is a pivotal year for Pearson – it is the first in several when Pearson is expected to return to underlying profit growth."

Sidney Taurel, Chairman

Read the full Chairman's statement

Deliver sustainable returns

54.1p

Adjusted earnings per share1

-8%

49.9p

Basic earnings per share2

n/a

4.3%

Return on invested capital (gross basis)

-0.7 percentage points

-4.5%

One year total shareholder return3

17p

Dividend per share

-67%

1. See p36–38 of the annual report for an explanation of these alternative performance measures and p192–195 of the annual report for full reconciliation of the numbers to the equivalent statutory measure and definitions of headline and underlying variances.
2.Equivalent statutory measure.
3.Source: Datastream.

CEO’s strategic overview

"We are optimistic about what the future holds and expect to make further progress in 2018."

John Fallon, Chief Executive

Read the full Chief Executive's review

Maintain long-term growth

£4,513m

Sales

-2%

£576m

Adjusted operating profit1

-9%

£451m

Operating profit2 

n/a

Manage our cash and balance sheet

£669m

Operating cash flow1

+1%

£462m

Net cash generated from operations2

-11%

£432m

Net debt

+60%

1. See p36–38 of the annual report for an explanation of these alternative performance measures and p192–195 of the annual report for full reconciliation of the numbers to the equivalent statutory measure and definitions of headline and underlying variances.
2. Equivalent statutory measure.

Our strategy

Our goal is to improve access and outcomes in education​ through our world-class capabilities in educational content and assessment, powered by services and technology.

Our strategic priorities

Grow market share through digital transformation

Invest in structural growth markets

Become simpler & more efficient

Non-financial KPIs

Talent & employee engagement

100%

Executives team's achievement of quarterly milestones

89%

% of Senior Leadership Group with development goals

83%

Employees taking at least one course on Pearson’s internal training
programme, PearsonU

Strengthen brand and reputation

59%

Awareness of Pearson among teachers, learners and parents

+2%

89%

Favourability of those aware of Pearson

+1%

Deliver gender diversity

30%

Female board members

No change

30%

Female senior managers7

-2%

61%

Female employees

+1%


7 Two reporting lines from the Chief Executive

Reduce our carbon footprint

104,384

Global greenhouse gas emissions (Metric Tonnes of CO2e)

-17%

Maintain community investment

£7.2m

Target 1% or more of adjusted pre-tax profits

+1.4%

Sustainability

Sustainability is integral to our company strategy. This is no accident as commercial success cannot be separated from ethical and sustainable business practice. It is fundamental to achieving our mission to help people progress in their lives through learning.

The three pillars of our sustainability plan are:

Be a trusted partner

Reach more learners

Shape the future of education